build your credit rating up for free

[baconbuttyman]

i am with helifax and even tho i have got my charges back, my rating was poor so i needed to build it up, i had an idea, so to test it i asked for an overdraft and got a flat "no2 with a curled lip.....so i started to pay my wages in as usual and though, what would happen if i withdrew it from the barclays opposit and put it BACK into my account straight away, so i did and did so for the nest 16 weeks, it was all my money, just basically paid my dosh in twice, then went in after the 16 weeks and reaplied for an overdraft, they said as i had doubled the money going thru my account, (even tho it was withdrawn once and paid in twice) i was offered a £500 overdraft, which i have refused cos i am just building my rating up, so a few more months of this and it will be better, so there you go, a simple way to do it

[blacksheep1979]

This won't show up on your credit check with equifax et al only with a company you already do business with.

[Rhombus]

Haha, nice technique! I have often wondered if doing this would allow you to open one of those accounts where they insist you pay in at least £2500 a month or so. Just by double-depositing your wages

[Jimbo44]

Haha, nice technique! I have often wondered if doing this would allow you to open one of those accounts where they insist you pay in at least £2500 a month or so. Just by double-depositing your wages

 

LOL!! I must confess I'd never thought of this method! "You learn summat new everyday"!!

 

I guess this could well work with First Direct when their new "£10 penalty for not paying in £1500 per month (unless you can afford a Deposit Account as well)" begins next year.

[YV01]

Ha ha. Very good. Will have to try this one.

[Petmidget]

i have done this in the past, basically rinsing money through a variety of accounts, banks all use statisical analysis and one of their major indicators is the amount of money deposited monthly.

 

It can get you better rates, more offers etc and i have to recommend it, and with internet banking and moving money reasonably quickly (and maybe even quicker in near future) then it is a pretty easy technique.

[blueskies]

I think this may work with whichever bank it is (First Direct I think) which is introducing the £10 charge for anyone with less than £1500 going through the account. If you are paid £1000, you withdraw it, you pay it back in, you then have £2000 going through the account. Even better in that it costs them to put the useless transactions through anyway.

[feefofum]

Yes this does work, I, and friends, have used it to all benefit from the free £50 A&L are offering to new customers, and basically it's the same 500 we're depositing in each others accounts! Well done A&L

[Jimbo44]

I guess that all this just goes to prove that whatever wheeze the banks etc can dream up to make life difficult for their customers, there's always an antidote too!!

[sarah13]

what an excellent idea- thanks for that!

[me_n_my_kids]

lol i like that one, especially the part about it costing them to process it serves them right for being greedy in the first place!! haha

[cheddar]

Yep this does work have seen it before but the title of this thread is wrong, this does nothing for your credit rating, only for the rating of your bank account as seen by your bank. Nothing more.

[dougalthedog]

But surely if the result is that you get an overdraft which you would otherwise not have been able to, this will improve your credit rating as all borrowings are shown on your credit report. You could then withdraw and pay in even more, ask for a higher overdraft etc. etc.

[LondonPam]

It has no effect whatsoever on your credit score. What it does effect is your behavioural score. This is used internally within most banks when you request other products from them.

[consort]

Just come across this thread, WHAT IF?

You had 2 bank accounts with an overdraft of say £500 each and you just swapped the cash to each account once a month this would be classed as credit, wouldn't it? so therefore it would improve your RATING.

 

OR,

 

If you could manage to get 2 small loans for say £500 each for 12 months and pay each monthly payment with the other one etc (find the lowest flat rate you can) could this be a cheap way to improve your credit rating?

[sarah13]

Just come across this thread, WHAT IF?

You had 2 bank accounts with an overdraft of say £500 each and you just swapped the cash to each account once a month this would be classed as credit, wouldn't it? so therefore it would improve your RATING.

 

OR,

 

If you could manage to get 2 small loans for say £500 each for 12 months and pay each monthly payment with the other one etc (find the lowest flat rate you can) could this be a cheap way to improve your credit rating?

 

as the person said before- your first idea would only improve your rating with a particular organisation. and to your second point- if you can get a low rated loan then you should not need to improve your credit rating!!!

[mnrbig]

As far as I am aware, banks currently don't report on your bank accounts to the CRA's unless you default. However HSBC has indicated that it is going to start doing this as "it is their duty as a responsible lender to insure you do not get into to much debt"

[demon_x_slash]

Pff, and how precisely will that 'help' you stay out of debt? HSBC are eejits.

[mnrbig]

Pff, and how precisely will that 'help' you stay out of debt? HSBC are eejits.

 

All the money owed on overdrafts, etc will be visable to anyone doing a credit search.

[blacksheep1979]

All the money owed on overdrafts, etc will be visable to anyone doing a credit search.

 

I'm fairly sure thats the case already

[mnrbig]

I'm fairly sure thats the case already

 

 

Nope, that's why people can have multiple cheque accounts with large overdrafts as the banks don't currently share this info with the CRA or each other.

[alexifa]

My Equifax record has the current balance of my accounts with HSBC and Halifax and Alliance & Leicester, including overdraft amounts

[mnrbig]

My Equifax record has the current balance of my accounts with HSBC and Halifax and Alliance & Leicester, including overdraft amounts

 

 

My accounts don't show up. That means some banks do and others don't. Have you agreed to them sharing your data?

[alexifa]

Have you agreed to them sharing your data?

It's in the standard terms and conditions

[Flippa]

Oooh nice tip I have accounts with Halifax and Natwest (both basic accounts) and pay different funds into each, if i recycled back and forth it might improve my status with them